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♪ captioned by the national captioning institute >> business news from the capital reon. this is "washington business report" with abc 7 national correspondent rebecca cooper. >> t thank you for jning us. a b weeeek of fancial new timeo assess the impact our regionon. whatat will not happen?n? ththe government wilill not shut down or face threats of a shutdown. most want to avoid a political fight so the house passed a bill funding the government for another si months of the fiscal year and the senate is scheduled to follow suit.
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what will happen? the federal uer -- the federal reserve announced they will launch bond buying, hoping qe will stimulate spending and job growth.. have strong opinions on thahat, but first, , defense industry leaderers are warning congress an autotomatic tax cuts scheduled for january will have an automatic -- a catatastrophic impact. what is the alternative? a european aerospace jugrnaut is poised to provide stier coetition to chicago-based bong and maryland-based lockheed mtin.n. joining us marion blakey, presidident of the aerospace industries association a lobbying g group that represents momore than 150 mufacturers. you have seen her befofore. she was former administrat of e faa and chairman o off the
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national transportation safety board. thanyofor joining the news first reported by "the walall street journal" about a merger. i know you can not comment on e bubusiness side of this, but there is talk about whetheruc large companieshould be lowed to merge. i think the united states government will not much to say since they areuropean countries -- companies. >> certaly they do a tremendous amount of business for e defense department. this wille in play. there are a lot of hurdles t go through. in the meantime,e, you know, you really do have to pass musr. >> h have you h heard concern expressed byny of your members? is bigger,r, better,r is
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coetition worrisome? >> i certainly do not have anything to offer on that, but es t timeoes on, we' be talking about those companies. >> some of the newss reports say that with what the defense cuts loomining, it could spur more merger let's get to that. that is a topic you havbeen talking about a great deal. let's start with study that everyo is quoting. that was done by stepephen fuller at george mason university. >> well, dr. fuller, the noted economist, look s jobs st when it comes to sequestraon. >> automatic spendincu in defensand elsewhere. looked it defense. >> exact. the e defense iact initially then across feder programs and the country, and the nunumbers are
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staggeriring. you're talking about the lososs of over 1 millionefense-reled jobs. agencies like n nasa, the department of agriculture which it 2.1illion jobs. >> the numbers might sound familiar to everye because s many advertisemes have been running for the politicical campaign. the potentiaial loss of 600,000 bs in our region, especially the virginia-area. let's break the members apart. there is no way to gauge where the jobs woulbe lost, so this looks at if there were a cross- the-board cuts at the same level at every level. nobody expts that. ththey expect heavy job losses, t nobody expects across-ththe bod-cuts.
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our people lobbying congress against sequestration overall, and at the s same timime saying if it happens, protect my program? >> they are approaching the same sequestration is a mindless, serious threat to the defense industry and national security. this is much more fundantal than fighting ofof specific programs. one of the problems is that it is stregic. it is acro the board. u are right, therere are areasas that c could be exempt. that puts more pressure on other line items. the whi hou has t bring out the specific g guidance e andd tell everne how are they going to administerer such a reckless thing that is putng us all risk. by the way there is almost nobody at ink sequestration should go rward. it is a question of finding an alternative.
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>> exactlyoth sidedes are lining of to o say y how horrible it would be but your point is the threat will lead to layoffs because we are to close to the automaticc cuts, andusinesses have to planan accorngly. your w warng is you had bette plan sooner rather than later. you are absbsolututely right. businesses have responsibility to their shareholdlders and in please, anand this is law -- ememplees. this is a lot. yohave to stt making plans and thatoes include layoffs >> we are running a lot of time, so i have to ask, ifif we delelay sequestration or calit off we're simplavoiding t b picture of the deficit problblem. are you offering alternatives as to what should be? >> we are cvincnced you have to address the fundamental with a
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partisan, balanced solutution. >> where is that? >> thiis something elected leaders are paid to do. we e elected t them to do that kind of a analysis s and make those choices it has too go to the fundamental of the fiscal crisis, whi h to do with eitlent refororm, taxefm, and certainly you have to loosttegically the federaral budget. denseontributed $487 billionn in the budget control act last summer. >> m marion blakey, something wee hope to have back o often. thank you for joining us. stay with us the round table takes up qe 3 ♪ ♪ [ male announcer ] from our nation's networks...
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that fridge in your kitchen may have crossed this bridge. your new car probobably rode these rails. that shipment you ju received was tracked by satellite. we build and maintain. we invest and d innovate. so we can deliver what america needs. this year alone, freight rail cpanies plan to spend twenty-three billion of their own money, not taxpayer dollars, to build bridges, maintain track, and develop new technologies to keep freight rail and our economy moving. there's a lot riding on these rails.
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exit does not sound very sex but the announcemt of new quantitative easing from the fed sent the stock mart soaring. the round table has some strong opinions and that t mo and
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other major businesss issues imimpactcting our regio barbara lang joins us, preresident and ceo of the d.c. chamber of commmmerce peteter m morici of the university of maryland, and josh boak of "the fiscal tim." weot new consumer spending numbers. what were the headlines? >> consumer spendi was up a lot, the most of that was higher gas prices. goining forward, there does not seem to be room for gwth when it comes to retail sells. >> beyond the heaines where do we see growth? >> wsaw a drop in clothing and electronicales. august is important for those products because it is back-to- school shopping. that tellsls you about the ntality of several consumers. >> barraigh and d guesessing some peoe re holding on for
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the i iphone. those numbmbers wi picick up in september. tatalk about specifically d.c., where you u see growth and decline. the restaurant business, new activity -- break it down for us. >> d.c., for t the first time since 2009, i believe has the lowest unemployment rate we have seen, and we are one of three states, noticed that i said " states" ththat saw decrease. >> i do not think the white house or congress noticed. >> i wanted to get back in. where we have seen that growth is in the hospitality arena hotels restaurants, bars. there haseen signifant growth. >> peteter morici, big newth week with evereryone waiting for
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months for the fed to take a step or not, and they announced they would quantitive easing, focuse on mtgage backed financing. explain the basic premise. >> the premimises to put money in the hand of banknks to make re mortgage loans and drive down rates, but they are already at record lows and d it is not likely that lenders, the people that financed these mortgages but are willing to take much less no matter what the fed does. i do not expect this will have an appreciable effectwo or three mont ago. >> you hit it. >> i think it isoolish politically-motivated, will damage the federal reserve long term and it poses a danger. it does not always mean inflation, but flying overhe
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economy and dumping dollars out the window, it is not a pretty picture. >> josh boak, ben bernanke was asked about inflation. he said he was notorried about it. a loof people asked if i it would rk. why is that the assessment? >> there is a limed supy of mortgage--backed s securities t there. the f fed hasone quantitative easing twice before. the rst time buying mortgage- backed securities. epiphany tell ofhe day bernanke himself, contrast to the statement, if knowledge there is very little he could do. >> will go to break andom back and talk about thisore,e, but josh boak, a fun fact for our viewers, sothining i lened from your reporting, the fed alreadady owns the book on
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mortgage-backed securits. >> $850 billionn worthth, and now they wantnother 550 billion more to buy. >> much more on this topic too come but first the federal hotot minute. cracks when congress was not able to pass legislation earlier thisis summer, the white house indicated they might issue an executive order. "national defense" magazine writes congress could nonot overcome divisive issues such as pracy rights, the government over reach and turf battle . in urging the president to issue the executive order, senator dianne feinstein said the threats are too big g to wait for legislation. she was quoted as saying the executive order can issue sever
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security standards and provide technical assistance willing -- for companiewilling to take voluntary steps. "forbes magazine" had an editorial stating tha n no exececutive orde is necessary. links to these and other stories
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tty/v. >> we are backith barbara lang, josh boak can't peter moci t to talk about the hot topics. we wer getting he did lking about the federal reserve and the idea of quantitative easing. josh boak yst is not going to have an impact. why is the market excited? >> the market believes more money causes more inflation. we have had a lot more money and we cannonot findhe inflation. e argument is somehow or o other it transtes into a stronger ock market. it would if they dro down interest rates rates a already lower than a ske's belli, it isis hard toto see how this will be sustainable. withth china slowiwing in the u.s. ecomy y growing at les than 2% it is hard to see where
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profability will come from. >> let's also acknowledge that ben bernankeke is something of a psychogist. the rket was expecting an oreo cookie.. he ge the same -- stuffed oreo cookie in a dble-stuffed o oreo cooe. >> our generation of economists believe you can only for the market for so long. you mimight get the ball out of this, but evenentually the air comesut. >> i was just going to ask a question, really. was this action because our elected officials s do not in terms of policy? >> a loaded question from barbara lang. >> i will ask k these gentlen cause w we and nonot gotten electe ficials to do what they need to >> i haveve said that we cannot get this economy going
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until wewe do something about china and oil development someing e president has promised to do and has not done. chuck schumer understand that. he is a big advocatate kind china and he has pressure fm chuck schumer and was lectured to get busy. >> do you think it is him feeling that he had digits soone e had to do something? >> he understandthat ts stage he is the last l line e of defense. you look at what congress has donene and what the white house s done, and the only source is stimulus. >> bararba lg, let me get to you. is this whwhat the business community is clamoring for? we know w retire a policy -- hate the pololicy. it is the one we interest rates are hurting people, people that
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have s savings. what doethe business community want? do they see this as helpful to them? >> i do not think they are sure if this will be helpful yet. with tax cuts -- i am sure they want a tax cut. i think the business community wants to see stable public policy, even if it is not something you agree with. you want it to be predictable. business people want predictability. lots of my members arere holding on to cash becausese things are so unstable. >> look at what congress is not doing -- not hammering out a spending agreement. theyey put that out six more months. they areot yet seen what they will or will not do about automatic cuts schedud for
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januy 1 and the termination of tax cuts scheduled for january 1. do your members feel like their hands are tied? >> i think t they feel you will not see anything happen uil you get past november >> what is your currentt thinking in terms of the eleion? statticacally, i am told that the economy alwayimproves when a democrat is reelectctedor when a republican is elected for the fit time. the good newfor the ecomy, we will be ok eitheray, , but whwhat is the latest fefeeling for the siness community? >> you know, i am not sure about my members becau we're not hold our members but if yoyou look at the national polls it lookoks like the tide is switching to blue. >> peter, republican arere saying if y you cannot get a republican
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elected in this economy, you might as well fold the partyty. you think president obama has been dead for the economy. where is mitt romney failing? >> how he would create jobs. the focus tax cuts is ridiculous. the other proposals with regards to china frighten people. they do not want higher prices at walmart. they are afraid about energy because of the beach in the gdp debacle - because of the bp debacle. >> josh boak, your last word. >> the mitt romney camampaign has been like a amdlib and obama has been able to fill them in. >> thankou. we'll be back after
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at bank of america, we're continuing to lend and invest in the people, businesses, and organizations that call greater washington home. whether it's funding an organization that provides new citizens with job training, working with an anacostia school that promotes academic excellence or supporting an organization that serves 5,000 meals a day across d.c., what's important to the people of greater washington is important to us, and we're proud to work with all tse who are making our communities stronger. that fridge in your kitchen may have crossed this bridge. your new car probably rode these rails. that
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shipment you just received was tracked by satellite. we build and maintain. we invest and novate. so we can deliver what america needs. this year alone, freight rail companies plan to spend twenty-three billion of their own money, not taxpayer dollars, to build bridges, maintain track, and develop new technologies to keep freight rail and our economy moving. there's a lot riding on these rails. >>, a number of the week is $6439, thee average credit-card balance in the washington area according to the credit monitoring service credidit,. not so good, because that makes our regioion second only too honolulu. glad you joined us. we hope to have you back nenext sunday for "washiningtonusiness report."."
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i am rebec cooper. when you first got internet at home you probably had one thing online. but today, everything's online. in a few years, the number of devices in your home will double and what we are doing online takes internet speed, not every network can handle it, verizon fios is 100% fiber optic so it's faster and can handle it. and now there's revolutionary fios quantum speed, more than twice as fast as anything this country has ever seen. to get your family up to speed with fios quantum -- call the verizon center for customers with disabilities go to at 800.974.6006 tty/v.
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that fridge in your kitchen may have crossed this bridge. your new car probably rode these rails. that shipment you just received was tracked by satellite. we build and maintain. we invest and innovate. so we can deliver what america needs. this year alone, freight rail companies plan to spend twenty-three billion of their own money, not taxpayer dollars, to build bridges, maintain track, and develop new technologies to keep freight rail and our economy moving.

Washington Business Report
ABC September 16, 2012 9:30am-10:00am EDT

News/Business. Hosted by Rebecca Cooper.

TOPIC FREQUENCY Us 6, America 5, China 3, Josh Boak 3, D.c. 3, Maryland 3, Chuck Schumer 2, Marion Blakey 2, Washington 2, Barbara Lang 2, Backith Barbara Lang 1, Peter Moci 1, Ben Bernankeke 1, Belli 1, Faa 1, Warng 1, Lockheed Mtin 1, Numbmbers Wi Picick 1, Anand 1, Rebec Cooper 1
Network ABC
Duration 00:30:00
Scanned in Annapolis, MD, USA
Source Comcast Cable
Tuner Channel 77 (543 MHz)
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 528
Pixel height 480
Sponsor Internet Archive
Audio/Visual sound, color

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on 9/16/2012